Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2018

Tuesday, 26. February 2019 13:15

ATHENS, Greece, Feb. 26, 2019 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, today reported net income of $2.9 million and net income attributed to common stockholders of $1.5 million for the fourth quarter of 2018, compared to a net loss of $436.9 million and a net loss attributed to common stockholders of $438.4 million, including a $422.5 million impairment loss, reported in the fourth quarter of 2017.

Time charter revenues were $62.9 million for the fourth quarter of 2018, compared to $48.9 million for the same quarter of 2017. The increase in time charter revenues was due to increased average time charter rates that the Company achieved for its vessels during the quarter and was partly offset by decreased ownership days resulting from the sale of two vessels in December 2018.

Net income and net income attributed to common stockholders for the year ended December 31, 2018 amounted to $16.6 million and $10.8 million, respectively. This compares to a net loss and net loss attributed to common stockholders of $511.7 million and $517.5 million, respectively, including a $422.5 million impairment loss, for the same period of 2017. Time charter revenues were $226.2 million for the year ended December 31, 2018, compared to $161.9 million for the same period of 2017.

 Fleet Employment Profile (As of February 25, 2019)
 Diana Shipping Inc.’s fleet is employed as follows:
         
 Vessel
BUILT DWT
Sister
Ships*
Gross Rate
(USD Per
Day)
Com**CharterersDelivery Date
to
Charterers***
Redelivery Date to Owners****Notes
 20 Panamax Bulk Carriers
1DANAEA$10,0005.00%Phaethon International Company AG22-Dec-177-Feb-191
   $8,1005.00%7-Feb-197-Jan-20 - 7-Apr-202
 2001  75,106       
2DIONEA$10,3505.00%Ausca Shipping Limited, Hong Kong23-Jan-1823-Mar-19 - 8-Jul-193,4
 2001  75,172       
3NIREFSA$10,7503.75%Hudson Shipping Lines Incorporated11-Aug-1811-Jul-19 - 11-Oct-19 
 2001  75,311       
4ALCYONA$8,8005.00%Hudson Shipping Lines Incorporated20-Jul-175-Dec-185
 2001  75,247       
5TRITONA$6,5005.00%Ausca Shipping Limited, Hong Kong8-Jun-1715-Oct-186
   $11,0005.00%Tongli Shipping Pte. Ltd.4-Nov-188-Dec-187
 2001  75,336       
6OCEANISA$7,0005.00%Ausca Shipping Limited, Hong Kong30-May-1716-Nov-18 
   $10,3505.00%16-Nov-181-Jan-20 - 31-Mar-20 
 2001  75,211       
7THETISB$8,3505.00%Ausca Shipping Limited, Hong Kong14-Jul-1719-Oct-188,9
   $10,6503.75%Hudson Shipping Lines Incorporated16-Nov-1816-Jan-20 - 16-Apr-20 
 2004  73,583       
8PROTEFSB$11,0003.75%Hudson Shipping Lines Incorporated19-Sep-184-Sep-19 - 19-Dec-19 
 2004  73,630       
9CALIPSOB$12,2005.00%Glencore Agriculture B.V., Rotterdam12-Mar-1828-May-19 - 12-Sep-19 
 2005  73,691       
10CLIOB$8,5505.00%Phaethon International Company AG9-Jul-1710-Nov-18 
   $10,6005.00%Ausca Shipping Limited, Hong Kong10-Nov-1810-Sep-19 - 10-Dec-19 
 2005  73,691       
11NAIASB$10,0005.00%Phaethon International Company AG26-Nov-1726-Jan-19 
   $10,0005.00%26-Jan-1926-Dec-20 - 10-Apr-21 
 2006  73,546       
12ARETHUSAB$12,6005.00%Glencore Agriculture B.V., Rotterdam27-Apr-1827-Apr-19 - 27-Jul-19 
 2007  73,593       
13ERATOC$10,5005.00%Phaethon International Company AG30-Dec-172-Mar-19 - 30-May-19 
 2004  74,444       
14CORONISC$8,3005.00%CJ International Italy Societa Per Azioni11-Aug-1810-Oct-18 
   $11,3005.00%10-Oct-1811-Aug-19 - 11-Nov-19 
 2006  74,381       
15MELIA $12,0005.00%United Bulk Carriers International S.A., Luxembourg28-Apr-1828-Sep-19 - 28-Dec-1910
 2005  76,225       
16ARTEMIS $12,6005.00%Ausca Shipping Limited, Hong Kong17-Sep-1817-Sep-19  17-Dec-19 
 2006  76,942       
17LETO $12,5005.00%Glencore Agriculture B.V., Rotterdam10-Jan-1810-May-19 - 25-Aug-19 
 2010  81,297       
18SELINAD$12,2505.00%BG Shipping Co., Limited, Hong Kong6-Feb-186-Jun-19 - 6-Sep-19 
 2010  75,700       
19MAERAD$11,7505.00%ST Shipping and Transport Pte. Ltd., Singapore4-Jul-1810-Feb-19 
   $7,0005.00%Glencore Agriculture B.V., Rotterdam10-Feb-1927-Mar-19 
   $9,4505.00%27-Mar-1910-Apr-20 - 10-Jul-20 
 2013  75,403       
20ISMENE $12,0005.00%DHL Project & Chartering Limited, Hong Kong16-Sep-1724-Nov-1811
   $12,1255.00%Koch Shipping Pte. Ltd., Singapore12-Dec-181-Jan-20 - 31-Mar-20 
 2013  77,901       
21CRYSTALIAE$11,1005.00%Glencore Agriculture B.V., Rotterdam3-Oct-1728-Jan-1912,13
   $10,5005.00%27-Feb-1927-Apr-20 - 27-Jul-2014
 2014  77,525       
22ATALANDIE$13,5005.00%Uniper Global Commodities SE, Düsseldorf27-Apr-1827-Jun-19 - 27-Sep-19 
 2014  77,529       
 5 Kamsarmax Bulk Carriers
23MAIAF$10,1255.00%Glencore Agriculture B.V., Rotterdam27-Jul-175-Nov-1815
   $13,3005.00%12-Nov-181-Jan-20 - 31-Mar-20 
 2009  82,193       
24MYRSINIF$8,6505.00%RWE Supply & Trading GmbH, Essen8-Jun-1722-Dec-18 
   $12,7505.00%Glencore Agriculture B.V., Rotterdam22-Dec-1822-Oct-19 - 22-Dec-19 
 2010  82,117       
25MEDUSAF$14,0004.75%Cargill International S.A., Geneva3-Sep-183-Oct-19 - 3-Dec-19 
 2010  82,194       
26MYRTOF$14,0004.75%Cargill International S.A., Geneva25-Apr-1825-May-19 - 25-Jul-19 
 2013  82,131       
27ASTARTE $9,0005.00%Glencore Agriculture B.V., Rotterdam12-Jun-1716-Oct-18 
   $14,2505.00%16-Oct-1816-Dec-19 - 16-Mar-20 
 2013  81,513       
 5 Post-Panamax Bulk Carriers
28ALCMENE $8,0004.75%Cargill International S.A., Geneva8-Jun-176-Oct-18 
   $14,0005.00%Smart Gain Shipping Co., Limited, Hong Kong6-Oct-189-Nov-18 
   $11,5005.00%BG Shipping Co., Limited, Hong Kong21-Nov-1821-Oct-19 - 21-Jan-20 
 2010  93,193       
29AMPHITRITEG$11,1504.75%Cargill International S.A., Geneva28-Sep-1727-Jan-19 
   $12,7505.00%Uniper Global Commodities SE, Düsseldorf27-Jan-1927-Mar-20 - 27-Jun-2016
 2012  98,697       
30POLYMNIAG$16,0004.75%Cargill International S.A., Geneva9-Jul-189-Sep-19 - 9-Dec-19 
 2012  98,704       
31ELECTRAH$8,0005.00%Uniper Global Commodities SE, Düsseldorf11-Jun-1719-Oct-18 
   $13,5005.00%19-Oct-1815-Sep-19 - 15-Dec-19 
 2013  87,150       
32PHAIDRAH$12,7005.00%Uniper Global Commodities SE, Düsseldorf13-Jan-1828-Feb-19 - 13-Apr-1917
 2013  87,146       
 14 Capesize Bulk Carriers
33NORFOLK $13,2505.00%SwissMarine Services S.A., Geneva1-Dec-171-Sep-19 - 1-Dec-19 
 2002  164,218       
34ALIKI $18,0005.00%SwissMarine Services S.A., Geneva9-Apr-189-Dec-19 - 9-Feb-20 
 2005   180,235       
35BALTIMORE $18,0505.00%Koch Shipping Pte. Ltd., Singapore6-Jun-1822-May-19 - 21-Aug-19 
 2005  177,243       
36SALT LAKE CITY $16,2504.75%Cargill International S.A., Geneva1-May-181-Mar-1917
 2005   171,810       
37SIDERIS GSI$13,0005.00%Rio Tinto Shipping (Asia) Pte., Ltd., Singapore21-Jun-1715-Nov-18 
   $8,5005.00%Berge Bulk Shipping Pte. Ltd., Singapore15-Nov-1815-Dec-18 
   $15,3505.00%15-Dec-1815-Dec-19 - 30-Mar-20 
 2006  174,186       
38SEMIRIOI$20,0505.00%Pacific Bulk Cape Company Limited, Hong Kong1-Sep-181-Jul-19 - 16-Sep-19 
 2007  174,261       
39BOSTONI$17,0005.00%EGPN Bulk Carrier Co., Limited, Hong Kong6-Dec-176-Apr-19 - 6-Jul-19 
 2007  177,828       
40HOUSTONI$19,0005.00%SwissMarine Services S.A., Geneva9-May-1817-Feb-19 
   $10,1255.00%Koch Shipping Pte. Ltd., Singapore17-Feb-1917-Apr-20 - 1-Aug-20 
 2009  177,729       
41NEW YORKI$16,0005.00%DHL Project & Chartering Limited, Hong Kong2-Feb-182-Jun-19 - 2-Sep-19 
 2010  177,773       
42SEATTLEJ$24,0005.00%Koch Shipping Pte. Ltd., Singapore30-Jul-1824-Dec-18 
   $16,0005.00%SwissMarine Services S.A., Geneva24-Dec-1824-Apr-20 - 24-Jul-20 
 2011  179,362       
43P. S. PALIOSJ$17,3505.00%Koch Shipping Pte. Ltd., Singapore24-May-189-Jun-19 - 24-Aug-19 
 2013  179,134       
44G. P. ZAFIRAKISK$15,0005.00%RWE Supply & Trading GmbH, Essen14-Aug-1731-Dec-18 
   $17,0005.00%SwissMarine Services S.A., Geneva31-Dec-1831-May-20 - 31-Aug-20 
 2014  179,492       
45SANTA BARBARAK$20,2504.75%Cargill International S.A., Geneva24-Apr-189-Oct-19 - 9-Dec-19 
 2015  179,426       
46NEW ORLEANS $21,0005.00%SwissMarine Services S.A., Geneva24-Mar-1826-Feb-19 - 24-Apr-1917
 2015  180,960       
 4 Newcastlemax Bulk Carriers
47LOS ANGELESL$19,1505.00%SwissMarine Services S.A., Geneva16-Apr-183-Mar-1918
   $13,2505.00%3-Mar-193-Jun-20 - 3-Sep-2014
 2012  206,104       
48PHILADELPHIAL$20,0005.00%Koch Shipping Pte. Ltd., Singapore18-Jun-183-Feb-20 - 18-May-20 
 2012  206,040       
49SAN FRANCISCOM$24,0005.00%Koch Shipping Pte. Ltd., Singapore14-May-184-Mar-19 - 24-May-19 
 2017  208,006       
50NEWPORT NEWSMBCI_2014 5TCs AVG + 24%5.00%SwissMarine Services S.A., Geneva10-Jan-1725-Feb-1918
   $16,5005.00%25-Feb-1925-Jun-20 - 25-Sep-2014
 2017  208,021       
* Each dry bulk carrier is a "sister ship", or closely similar, to other dry bulk carriers that have the same letter.
** Total commission percentage paid to third parties.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
 
1 Vessel off hire for drydocking from November 26, 2018 to December 22, 2018.
2 Vessel sold and expected to be delivered to her new Owners at the latest by June 28, 2019.
3 Vessel off hire for drydocking from December 17, 2018 to January 12, 2019.
4 Vessel sold and expected to be delivered to her new Owners at the latest by April 15, 2019.
5 ''Alcyon'' sold and delivered to her new Owners on December 7, 2018.
6 Vessel on scheduled drydocking from October 17, 2018 to November 1, 2018.
7 ''Triton'' sold and delivered to her new Owners on December 10, 2018.
8 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on October 15, 2018, for the excess period commencing from October 14, 2018.
9 Vessel on scheduled drydocking from October 22, 2018 to November 16, 2018.
10 Vessel off hire from October 22, 2018 to October 25, 2018.
11 Vessel on scheduled drydocking from November 26, 2018 to December 12, 2018.
12 Charterers have agreed to pay the average value between ''P2A_03 Skaw - Gibraltar trip to Taiwan - Japan'' and ''P3A_03 Japan - South Korea transpacific round voyage'', as published by the Baltic Exchange on January 18, 2019, for the excess period commencing from January 18, 2019.
13 Vessel on scheduled drydocking.
14 Estimated delivery date to the charterers.
15 Charterers have agreed to pay the weighted average of the Baltic Panamax 4 T/C routes, as published by the Baltic Exchange on October 26, 2018 plus 18%, only in case it is higher than the existing rate of US$10,125 which otherwise will continue to apply, for the excess period commencing from October 27, 2018.
16 The charter rate was US$5,000 per day for the first 5 days of the charter period.
17 Based on latest information.
18 Estimated redelivery date from the charterers.


Summary of Selected Financial & Other Data (unaudited)
   Three months ended December 31, Year ended December 31,
   2018
 2017
 2018 2017
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars)
 Time charter revenues $62,874  $48,936  $226,189  $161,897 
 Voyage expenses  2,747   3,020   7,405   8,617 
 Vessel operating expenses  25,210   24,021   95,510   90,358 
 Net income/(loss)  2,908   (436,932)  16,580   (511,714)
 Net income/(loss) attributed to common stockholders  1,466   (438,374)  10,811   (517,483)
FLEET DATA
 Average number of vessels  49.5   50.3   49.9   49.6 
 Number of vessels  48.0   50.0   48.0   50.0 
 Weighted average age of vessels  9.1   8.4   9.1   8.4 
 Ownership days  4,554   4,624   18,204   18,119 
 Available days  4,445   4,615   17,964   17,890 
 Operating days  4,405   4,562   17,799   17,566 
 Fleet utilization  99.1%  98.9%  99.1%  98.2%
AVERAGE DAILY RESULTS
 Time charter equivalent (TCE) rate (1) $13,527  $9,949  $12,179  $8,568 
 Daily vessel operating expenses (2) $5,536  $5,195  $5,247  $4,987 


  ______________
(1) Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards.  Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions.  TCE is a non-GAAP measure.  TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
   
(2) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

Conference Call and Webcast Information

The Company’s management will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Tuesday, February 26, 2019.

Investors may access the webcast by visiting the Company’s website at www.dianashippinginc.com, and clicking on the webcast link. The conference call also may be accessed by telephone by dialing 1-877-407-8291 (for U.S.-based callers) or 1-201-689-8345 (for international callers), and asking the operator for the Diana Shipping Inc. conference call.

A replay of the webcast will be available soon after the completion of the call and will be accessible for 30 days on www.dianashippinginc.com. A telephone replay also will be available for 30 days by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Replay ID number 13687408.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

(See financial tables attached)

DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share and per share data
          
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
 
   Three months ended December 31, Year ended December 31,
   2018 2017 2018 2017
         (audited)
REVENUES:        
 Time charter revenues$62,874 $48,936 $226,189 $161,897 
 Voyage expenses 2,747  3,020  7,405  8,617 
 Vessel operating expenses 25,210  24,021  95,510  90,358 
 Depreciation and amortization of deferred charges 13,001  21,920  52,206  87,003 
 General and administrative expenses  8,995  8,157  29,518  26,332 
 Management fees to related party 594  542  2,394  1,883 
 Impairment loss -  422,466  -  442,274 
 Loss from sale of vessels 1,448  482  1,448  - 
 Insurance recoveries, net of other loss -  -  -  (10,879)
 Other loss/(gain) (245) 9  (542) 296 
 Operating income/(loss)11,124  (431,681) 38,250  (483,987)
          
OTHER INCOME / (EXPENSES):        
 Interest and finance costs (9,039) (6,754) (30,506) (26,628)
 Interest and other income 839  1,480  8,822  4,508 
 Gain/(loss) from equity method investments (16) 23  14  (5,607)
 Total other expenses, net (8,216) (5,251) (21,670) (27,727)
          
Net income / (loss)$2,908 $(436,932)$16,580 $(511,714)
Dividends on series B preferred shares (1,442) (1,442) (5,769) (5,769)
Net income / (loss) attributed to common stockholders 1,466  (438,374) 10,811  (517,483)
          
Earnings / (loss) per common share, basic and diluted$0.01 $(4.28)$0.10 $(5.41)
          
Weighted average number of common shares, basic 103,892,507  102,394,183  103,736,742  95,731,093 
          
Weighted average number of common shares, diluted 105,150,906  102,394,183  104,715,883  95,731,093 
          
   Three months ended December 31, Year ended December 31,
   2018 2017 2018 2017
         (audited)
Net income/(loss)$2,908 $(436,932)$16,580 $(511,714)
Other comprehensive income/(loss) (Actuarial gain/(loss)) 17  130  (7) 109 
Comprehensive income/(loss)$2,925 $(436,802)$16,573 $(511,605)


CONDENSED CONSOLIDATED BALANCE SHEET DATA  
(in thousands of U.S. Dollars)  
      
   2018 2017 *
ASSETS (unaudited)  
      
Cash and cash equivalents$126,825$40,227
Due from related parties - 82,660
Other current assets 15,147 15,874
Vessels, net of depreciation 991,403 1,053,578
Other fixed assets, net 22,425 22,650
Restricted cash 24,582 25,582
Investments in related parties 3,263 3,249
Other non-current assets 4,151 2,902
 Total assets $1,187,796$1,246,722
      
LIABILITIES AND STOCKHOLDERS' EQUITY    
      
Long-term debt, net of deferred financing costs$530,547$601,384
Other liabilities 29,565 20,580
Total stockholders' equity 627,684 624,758
 Total liabilities and stockholders' equity $1,187,796$1,246,722
      
*The balance sheet data have been derived from the audited consolidated financial statements at that date.


OTHER FINANCIAL DATA (unaudited)
  Three months ended December 31,  Year ended December 31,
  2018 2017 2018 2017
        (audited)
Net Cash provided by / (used in) operating activities$27,959 $12,241 $79,930 $23,413 
Net Cash provided by / (used in) investing activities 13,482  13,351  99,370  (152,333)
Net Cash provided by / (used in) financing activities$(92,140)$(22,484)$(93,702)$73,587 
Corporate Contact:
Ioannis Zafirakis
Director, Chief Strategy Officer and Secretary
Telephone: + 30-210-9470100
Email: izafirakis@dianashippinginc.com
Website: www.dianashippinginc.com

Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net

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